Which of the following statements about foreign affiliates is true?

Question

Quizplus · Accepted Answer

Foreign affiliates may have a significant positive impact on the host country's economy by creating employment opportunities, stimulating trade, and improving the balance of payments. A is incorrect because the profitability of foreign affiliates varies depending on factors such as the industry, market conditions, and management efficiency. B is incorrect because foreign affiliates can actually help to diversify the portfolio and reduce risk for the parent company. D is incorrect because foreign affiliates are created for a variety of reasons, including access to new markets and resources.

Which of the Following Statements About Foreign Affiliates Is True